Brand Extension and Top Valuable BrandsBrand Extension:Extend current brand to completelydifferent product class/categoryhttp://en.wikipedia.org/wiki/Product_lining Source: http://www.interbrand.com/en/best-global-brands
Product Line Extension vs. Trading Up/Down Product Line Extension: Trading Up/Down: Add a new product to a product line, Market Segmentation extension. or add new product category with Add a line extension that is of different brands better/lower quality. http://en.wikipedia.org/wiki/Product_lining www.google.com/image
Supply Chain Extension /Stretching Supply Chain Extension: Business expansion along supply chain. http://en.wikipedia.org/wiki/Product_lining www.google.com/image
One Week Ahead RemindingOn November 30th :•On line forum will be closed•Team Project Report Due•Team Peer Evaluation Due•Last date to submit all bonus assignments &case studies
Agenda1. Economic Globalization • What, when, where, why • Pros & Cons1. International Marketing Strategies • Global Environment Scan (PEST) • Global Market Entry Strategies • International Marketing Mix3. Dynamics of World Trade • Trade Balance • Canada Prospective
1. ECONOMIC GLOBALIZATIONA new reality: global competition amongglobal companies for global customers.Globalization happens on every stage onSupply Chain.
Boeing 787 Production NetworkThe final assembly for the Boeing 787 will take place at Boeing plant in Everett,Washington. http://bintang.site11.com/Boeing_787/Boeing787_files/Assembly.html
IPOD Production from MIT Media Lab documents the global supply chain of the things we use every day. www.wto.org1. Apple Engineers – CA, USA2. Flash Memory –South Korea3. HDD Input – Japan WTO Initiative to support free4. Other Parts - Taiwan trade and practical approaches in+. PCB Assemble & test – Shanghai measuring and analysing trade in IPOD Production – Shanghai value added.5. Apples Management – Singapore Handout -1 http://sourcemap.com/view/163
GLOBALIZATION Causes - • Outsourcing products to cheaper global suppliers • Relocating production to more efficient sources • Offering products to a larger market • Investing in different economies for higher returns • Realized by IT and transportation development Containerization The largest US importer, Wal-Mart, shipped over 575,000 TEUs of cargo in 2004, or over 11,000 TEUs per week. http://www.tc.gc.ca/eng/policy/report-acg-containers2006-c3-219.htm
“THE WORLD IS FLAT” vs. “THE WORLD IS NOT FLAT” Pros • increased income, employment • growth of the global economy Cons • income inequality increased • Human trafficking (such as child labour) increased • Environment cost http://www.disinfo.com/2011/06/why-the-world-isnt-as-flat-as-thomas-friedman-says/
CASE STUDY – CNS Breathe Right® Strip1. What are the opportunities/impediments ofCNS taking its Breathe Right® strip intointernational markets?2. Which marketing mix variables (4Ps) should CNSemphasize the most to succeed in a global arena?
1. What are the opportunities/impediments of CNS taking its Breathe Right® strip into international markets?Opportunities: • Congestion problems are universal • “natural” products , non-drug nasal strip • innovative productImpediments: • “International” can’t be treated as one big market • Market strategy to fit local market is difficult, takes time and money to identify and implement • developing new packaging and advertising, educating potential consumers, and finding efficient distributors and channels can be costly.
2. Which marketing mix variables (4Ps) should CNSemphasize the most to succeed in a global arena?•Product localized•Skimming price strategy.•Distribution is very important because of the differences inchannels and the implications it has for positioning.•Promotion, more specifically publicity, is also very importantbecause few consumers will know what the product is when it isfirst introduced.•CNS’s experience is that finding a strong partner is critical to itsultimate success in a country.
2. INTERNATIONAL MARKETING STRATEGIES • Global Environment Scan (PEST) • Global Market Entry Strategies • International Marketing Mix
Social Environment ScanEvery place does business its own way. Cultural Diversity • Values • Customs • Language Business Practices • Relationships & Communication • Business Meeting Etiquette • Business Negotiating Etiquette • Gift Giving Etiquette • Dressing/Dining Etiquette http://www.kwintessential.co.uk/etiquette/doing-business-in.html
Deal-killing Faux Pas• Business card rituals • Do study carefully upon receiving • Don’t use as tooth pick, bend, shove in pocket w/o glance, scribble notes• It’s ok to act like a foreigner—within limits! • When to bow • When to speak English
MULTINATIONALBusiness Strategy Multinational BUSINESS STRATEGYHome Country Foreign Country Home Centralization (Exporting) Replication Foreign Centralization (Importing) http://pptbusiness.net/levels-of-multinational-strategy.html http://pptbusiness.net/levels-of-multinational-strategy.html
“the most famous Canadians in China” Have you heard of them? Mark RowswellNorman Bethune
Electronic Contract Manufacturing• EMS - Electronic manufacturing services is a term used for companies that design, test, manufacture, distribute, and provide return/repair services for electronic components and assemblies.• OEM-original equipment manufacturers• ODM-Original Design Manufacture http://en.wikipedia.org/wiki/Electronics_manufacturing_services